Falling vegetable prices give RBI respite from pressure on inflation, rates

Sizzling vegetable prices in India that have kept inflation high are beginning to cool, helping price growth return toward the central bank’s target band and allowing policy makers to keep interest rates lower for longer.

The wholesale price for staples such as onions was 29 rupees (39 cents) a kilogram in New Delhi on Tuesday, down 29% from Nov. 1, while the price of tomatoes fell about 11%, according to the department of consumer affairs. Potatoes dropped 1.7% to 29.5 rupees during the same period, it said.

With fresh crops arriving at wholesale markets, including in New Delhi’s Azadpur Mandi, one of